Tech Mahindra Q4 results: Net profit falls 40% YoY to ₹664 crore, dividend declared

Tech Mahindra, the IT arm of tractor-to-finance conglomerate Mahindra & Mahindra, posted a consolidated net profit of ₹664 crore in the fourth quarter of financial year 2023-24 (Q4 FY24).

This is 40% lower as compared to the net profit of ₹1,126 crore logged in the January-March quarter of FY23. However, the net profit rose 27% sequentially as compared to ₹524 crore in the December 2024 quarter.

The revenue from operations declined to ₹12,871 crore, down 6.1% from ₹13,718 crore in the year-ago period. Quarter-on-quarter, the revenue is 1.9% higher as against ₹13,101 crore in the October-December period.

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Tech Mahindra’s earnings before interest, taxes, depreciation and ammortisation (EBITDA) came in at ₹1,098 crore in Q4FY24, down 39% as compared to ₹1,808 crore in the same quarter a year ago.

Tech Mahindra declares dividend

The company informed the exchanges that its board has given the nod for a dividend of ₹28 per share. If approved by the shareholders, the final dividend will be paid out on or before August 9, 2024, it added.

The board of directors “recommended final dividend of ₹28 per equity share of the face value of ₹5 each (560%) for the financial year ended 31st March, 2024, subject to the members’ approval at the forthcoming Annual General Meeting (AGM) of the company”, the regulatory filing stated.

This dividend is in addition to the interim dividend of ₹12 per equity share paid by the company in November 2023. “The total dividend for FY 2023-24 will be ₹40 per equity share on par value of ₹5 each i.e. 800%,” it added.

Headcount declines

The employee headcount in the quarter ending March 31 dropped by 795, Tech Mahindra said. For the entire FY24, the total number of staff declined by 6,945, the IT company added. The total number of employees at the end of the fiscal year stood at 145,455.

The last time when Tech Mahindra reported a year-on-year decline in employee headcount dates back to 2018.

Meanwhile, the attrition rate dropped to 10% in Q4 FY24, as compared to 11% percent in the preceding December 2024 quarter.

Tech Mahindra shares

The company declared its quarterly results after the conclusion of market hours. Ahead of the results, Tech Mahindra closed in the green. The scrip was valued at ₹1,190.75 apiece on the NSE at closing bell, up 0.43% as against the previous day’s close. Year-to-date, the stock has declined by 8.2%.